Question Period Note: Canada Community-Building Fund (formerly the Gas Tax Fund)

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About

Reference number:
INFC-012023-INFC-0002
Date received:
Sep 26, 2022
Organization:
Department of Housing, Infrastructure and Communities
Name of Minister:
LeBlanc, Dominic (Hon.)
Title of Minister:
Minister of Intergovernmental Affairs, Infrastructure and Communities

Issue/Question:

How does the Canada Community-Building Fund support infrastructure projects across Canada?

Suggested Response:

  • The Canada Community-Building Fund provides $2.3 billion per year of predictable, long-term funding that helps communities build and revitalize their public infrastructure.

  • The program reaches over 3,600 communities across the country, and supports nearly 4,000 projects per year in 19 flexible categories.

  • The most commonly funded categories of projects are for highways and roads, public transit, and wastewater treatment.

  • The program was temporarily topped-up in 2019 and in 2021 – first to help municipalities and First Nations communities facing serious infrastructure deficits and to address short-term priorities, and again in 2021 in response to challenges brought about the pandemic.

  • In 2022, program funding returns to $2.3 billion, transferred to provinces and territories in two equal payments during the year.

Background:

  • The Gas Tax Fund was re-named the Canada Community-Building Fund (CCBF) with the adoption of the 2021 Budget Implementation Act on June 29, 2021.

  • The Fund was established in 2005 and originally designed to provide municipalities with $5 billion in predictable funding over five years. The program was extended and legislated as a permanent source of federal infrastructure funding for municipalities in 2014.

  • The renewed Fund is indexed at 2% per year, to be applied in $100 million increments. From 2014 to 2024, the program will provide municipalities with over $26 billion in infrastructure funding.

  • Two additional top-up payments were allocated in 2019 and 2021, doubling the funds provided to $4.4 billion in those two years.

  • Eligible categories of investment are broad and include public transit, local roads and bridges, drinking water and wastewater infrastructure, community energy systems, culture, recreation, disaster mitigation, fire halls and capacity building.

  • The CCBF agreements with provinces and territories are due to be renewed in 2024.

Additional Information:

None